If not likely a big increase is coming and unlike commercial NNN where tenants pay the taxes you will eat that cost with an apartment building.Look at if it is landlord paid utilities or not.

A roof, furnace, driveway eat up almost all of your gross income for a year, nevermind paying for taxes, insurance, debt, maintenance, etc..I wrote a blog post that might help you understand the numbers.... in fact, that's part of the title.  

That could increase your holding costs and eat into that profit as well.An old investor I used to work with would say "the juice ain't worth the squeeze" and for $120k you might as well do some much less risk SFR flips that have a much bigger pool of buyers and will easily sell in a month or less.

Every time I sell a home the commissions are eating up a big part of the total profit I want to buy a home doing my own contract directly with the seller.

What is eating up most of your budget?  

While same could be said about how people calculate Vacancy Factor and Maintenance Reserves, I notice that people struggle the most with Cap-Ex Reserves.This especially becomes a problem when folks rely primarily on their rental income to eat and live.

this job was crazy.. it was never ending and it felt like i was trying to trap wild animals with my bare hands. i am so happy you sold it and i will never see it again. i am also ecstatic that you made a nice profit on it as well..it was a good learning experience for you and i am glad i was a part of it!

If you start to budget $2K (for round numbers) for a round-trip flight/car rental/hotel/etc. you can eat away (on a percentage basis) at the nest egg pretty quickly.  

In that case you have an alligator that eats your lunch. 

A condo will have a monthly Condo Owner Association (COA) Fee which will eat into your cash flow.